Full year results
17 June 2026
CML Microsystems Plc
("CML", the "Company" or the "Group")
Full Year Results
Strong second half recovery and strategic progress position CML for renewed growth
CML Microsystems Plc, which develops mixed-signal, RF and microwave semiconductors for global communications markets, announces its Full Year Preliminary Results for the year ended 31 March 2026.
Financial Highlights
· Revenue of £20.45m (FY25: £22.90m), with a significant improvement in trading performance during the second half.
· Gross profit of £12.89m (FY25: £15.89m) equating to a gross margin of 63% (FY25: 69%), reflecting a higher contribution of NRE income in revenue mix.
· Cash balances at period end increased to £12.80m (31 March 2025: £9.92m).
· Net assets increased to £51.45m (FY25: £49.01m), including a £1.88m revaluation surplus on the remaining Oval Park land and buildings. In accordance with IAS 16, the uplift was recognised within other comprehensive income rather than the income statement and therefore did not impact reported profit before tax.
· Recommended final dividend of 6.0p per share (FY25: 6.0p per share) giving a full year dividend of 11.0p (FY25: 11.0p).
Operational Highlights
· Landmark 12-year design and supply agreement valued at more than $30 million with a leading global manufacturer of industrial GNSS equipment, validating the Group as a systems-level partner.
· Following 18 months of customer interaction we enter FY27 optimised for future success and focussed on four market verticals; Professional & Industrial Communications, Network Infrastructure, Industrial IoT and Aerospace & Defence.
· Completed a multi-year transformation into a pure play communications semiconductor company enabling the Group to effectively focus on the market sectors that will drive future growth.
· Continued investment in innovation with £5.50m invested in R&D and further expansion of the RF and microwave product portfolio.
Chris Gurry, Group Managing Director of CML Microsystems, commented: "FY26 delivered significant strategic and operational progress despite continued market headwinds. The second half saw a stronger financial performance, supported by improving customer inventory levels and growing order activity, while the signing of our long-term GNSS contract represents an important milestone for the business.
With our transformation complete, a strong balance sheet supporting multi-year growth, an expanding product portfolio and healthy level of opportunity in the pipeline, we enter FY27 expecting a return to revenue growth and the Board remains confident that the Group is well placed to deliver on its growth ambitions."
CML Microsystems Plc
Chris Gurry, Group Managing Director
Nigel Clark, Non-Executive Chairman
Tel: +44(0)1621 875 500
Shore Capital
Toby Gibbs
James Thomas
Lucy Bowden
Fiona Conroy (Corporate Broking)
Tel: +44(0)20 7408 4090
Alma Strategic Communications
Josh Royston
Andy Bryant
Robyn Fisher
Tel: +44 (0)20 3405 0212
About CML Microsystems Plc
CML develops mixed-signal, RF and microwave semiconductors for global communications markets. The Group utilises a combination of outsourced manufacturing and in-house testing with trading operations in the UK, Asia and USA. CML targets sub-segments within Communication markets with strong growth profiles and high barriers to entry. It has secured a diverse, blue chip customer base, including some of the world's leading commercial and industrial product manufacturers.
Growth in its end markets is being driven by factors such as the appetite for data to be transmitted faster and more securely, the upgrading of telecoms infrastructure around the world and the growing prevalence of private commercial wireless networks for voice and/or data communications linked to the industrial internet of things (IIoT).
The Group is cash-generative, has no debt and is dividend paying.
Chairman's statement
This year the Group delivered meaningful commercial and operational progress despite continuing global macroeconomic pressures, heightened geopolitical uncertainty and the lingering effects of widespread semiconductor supply chain disruption.
Despite these headwinds, the Group's progress in the year showed real substance: revenue momentum improved late in the second half, we secured a landmark contract with a leading manufacturer of global navigation satellite system (GNSS) equipment and substantially completed our work on non‑operational property assets through the disposal of the excess land at the Company's headquarters.
The July 2025 signing of a twelve‑year design and supply agreement with a leading global manufacturer of industrial GNSS equipment was a standout commercial achievement. Worth in excess of $30m, the contract validates CML's role not just as a component supplier but as a systems‑level partner able to satisfy stringent high‑precision wireless communications requirements. The initial two-to-three-year design phase is well underway and will pave the way for substantial product sales, where CML's ability to meet stringent manufacturing requirements and provide long-term supply chain resilience are additional key attributes.
Issues reported at our interim results relating to proactive activities to secure supply of certain core products, as well as unplanned engineering effort to restore shipment availability of specific SµRF products, were successfully concluded. Availability of the affected products commenced in the second half of the year.
Having completed a multi-year transformation of the business into a pure play communications semiconductor company, coupled with 18 months of customer and market interaction with the enlarged product portfolio, a refining of our target market verticals and application areas was concluded. This will enable the Group to efficiently and effectively focus on the market sectors and subsectors that will drive our future growth.
The Board's objective to raise cash from its non-operational property interests has continued. The sale of the excess land at Oval Park was achieved in the financial year, generating £7m and, more recently, we have signed a commercial property lease on the Meon House building in Fareham. The tenant has an option to buy. These one-off transactions have strengthened our balance sheet and profitability, aiding future growth and shareholder returns.
As expected, revenues were lower year-on-year at £20.45m (FY25: £22.90m) but pleasingly the second half of the year saw a significant improvement, both sequentially and on the comparable second half last year. This contributes to our belief that the multi-year customer inventory overhang is coming to an end. It should also be noted that the composition of revenue in the year included a higher than originally expected contribution from non-recurring engineering (NRE) income, driven by the design activity element of our significant new GNSS contract.
The overall product mix, combined with an increased amount of NRE income, delivered a gross profit margin of 63% (FY25: 69%), a decline of £3m in absolute terms. Operational costs were slightly elevated, leading to a loss from operations before exceptional items of £1.93m at the trading level. This operating loss was reduced to a loss before taxation of £0.07m (FY25: £0.77m loss) after including the sale of excess land at Oval Park and the impairment of development costs.
The remaining land and buildings at Oval Park were subsequently revalued to accurately reflect the asset value, leading to an uplift of £1.88m. At the time of the Group's trading update on 1 April 2026, we were expecting to report a statutory profit before tax of approximately £1.8m for FY26, based upon this gain, along with other exceptional items. The subsequent FY26 audit process, in accordance with the IAS 16 standard, has led to this gain being excluded from the Consolidated Income Statement; instead, it is shown as a revaluation surplus within the Statement of Total Comprehensive Income.
As communicated in previous years, the Board has maintained its dividend policy throughout this multi-year transitional period, signalling its confidence in the long-term potential of the business. The Group's strong balance sheet, with net assets increasing to £51.45m (FY25: £49.01m) and overall cash reserves advancing to £12.8m (FY25: £9.92m), provides the financial foundations to deliver this approach.
The Board has decided to recommend paying a final dividend of 6p (FY25: final dividend of 6p) taking the total dividend paid for the year ended 31 March 2026 to 11p (FY25: 11p).
The Board will continue to review the dividend policy considering the Group's financial performance and the prevailing macroeconomic environment with a desire to rapidly reach the stage where payments are covered by trading profitability and cash flow at the operating level. As we enter FY27 the Board has a clear capital allocation commitment that maintains shareholder returns whilst investing in the business for growth.
Subject to shareholder approval, the shares will go ex-dividend on 6 August 2026, and the dividend will be paid to shareholders on 21 August 2026 whose names appear on the register at close of business on 7 August 2026.
Our employees remain the cornerstone of everything we do. The Group's ability to navigate the challenges of recent years, execute a complex transformation programme and simultaneously deliver an expanded product range, reflects the talent, commitment and resilience of our teams across the UK, USA and Asia. On behalf of the Board, I extend my sincere thanks to each and every one of our colleagues for their continued dedication. Their efforts have been instrumental in positioning the business for the growth chapter ahead.
The Corporate Governance Report within the forthcoming Annual Report describes the Group's approach to governance and how it supports the delivery of our strategy. The Board is committed to operating to high standards across all aspects of governance, and the Audit and Remuneration Committees have continued to discharge their responsibilities effectively during the year.
I am struck by how much has been achieved over the past year despite difficult global conditions. Just over five years ago we concluded that the constitution of the business needed to change if we were to deliver meaningful and sustainable growth. A combination of corporate activity, whilst simultaneously investing in people and operations, means we can look forward with confidence at our materially larger market opportunity and product range.
Throughout this period, we have consistently provided shareholder returns via dividends, buybacks and a return of capital. With the business transformation completed we have transitioned to a growth phase, where we will begin to realise the benefits of those actions.
Our anticipated progress is based upon a continued winding down of the customer inventory overhang along with firmer demand across the key market verticals. Positive revenue momentum in the final months of FY26 was encouraging and has continued into the new year.
For FY27 the Board expects to see a return to revenue growth. Global uncertainties remain a risk, and we are mindful that reliable customer forecasting in this environment requires caution. However, the Group has entered the year backed by a strong team, an expanding product portfolio, a broader customer base and a very healthy level of opportunities in the pipeline.
In summary, the Board is confident that the Group is well placed to deliver on its growth ambitions across our target markets through an enlarged and increasingly differentiated product set.
Nigel Clark
Non-Executive Chairman
Operational and financial review
Overview
CML successfully navigated a challenging year, while simultaneously investing in operational areas and personnel that are key to our future growth plans. Having been initially cautious about the first half, our expectation was for a recovery in the second half amid optimism that the toughest challenges were behind us. I am pleased to report that the final quarter delivered a stronger financial performance, with the excess customer inventory levels that have been a feature of prior reporting periods showing good improvement. The year ended positively, with a progressive order backlog across the year adding to our confidence for the period ahead.
Markets and products
Maintaining healthy investment levels in new product development activities has been and will continue to be fundamental to our growth strategy. The product portfolio has expanded considerably over the last few years as a precursor to entering several new market areas where we believe we can obtain a sizeable market share through a standard product philosophy, complemented by periodic custom developments where both strategic and commercial objectives are met.
As mentioned at our interim results, a refining of the target application areas within our chosen markets was undertaken following 18 months of customer interaction with the enlarged product portfolio. The results of that process have been implemented, and we enter FY27 optimised for future success and focused on four market verticals: Professional & Industrial Communications (P&I), Network Infrastructure, Industrial IoT (IIoT) and Aerospace & Defence.
Group revenues were dominated by two of these four new sectors: P&I (54%) and IIoT (24%); however, commercial and engineering activities were heavily focused on expansion prospects across all sectors. This is evidenced by the pipeline of new opportunities being actively pursued, which includes programmes for UAVs/drones, radar, RFID, test and measurement, and 5G backhaul. These are all supplementary markets to CML's traditional core application areas and are expected to become meaningful growth contributors in the future.
Professional & Industrial Communications
Typical customers include mobile radio OEMs manufacturing end products for public‑safety agencies, commercial fleets for transportation and logistics, public utilities and maritime applications. The market size for RF/mixed-signal semiconductor content within the sector exceeds $1bn, reflecting an attractive and resilient niche with high barriers to entry within the broader RF and baseband semiconductor market.
Growth drivers include ongoing digital migration, LTE/5G push‑to‑talk convergence, ruggedised and reliable device demand and secure mission‑critical comms. We are fortunate to count most of the leading manufacturers as customers and expect to experience solid annual growth over the next several years.
The broadcast radio standard DRM (Digital Radio Mondiale) has further consolidated its position as the prevailing digital radio standard across the Asia-Pacific region. DRM is an exciting future opportunity for CML. The most significant development was in China, where the National Radio and Television Administration formally adopted the DRM standard for digital broadcasting in the medium and shortwave bands in mid-2025. Activity has now shifted from validation towards field trials and subsequent deployment.
CML's progress has continued and our DRM1000 module transitioned to first commercial launch, with initial production of the module in India. We recently unveiled a new multi-standard DRM and DAB+ receiver platform and continue to lead industry promotion through the DRM Consortium. The recent appointment of CML's Product Director as a Vice-Chair of the Consortium reflects the Company's sustained commitment to market development over the coming years.
Network Infrastructure
Network Infrastructure customers incorporate manufacturers of equipment such as macro/small cells, backhaul microwave links, fixed wireless access radio, test and measurement equipment and LEO/GEO satellite terminals.
The market is diverse and exceeds double-digit USD billions in size. Future growth drivers include 5G densification, private networks, higher‑capacity microwave/mmWave backhaul and Open RAN deployments. CML has a focused product portfolio along with the technical and financial strength to support multi-year customer qualification commitments.
Industrial IoT
Industrial IoT is a substantial, fast-growing ecosystem utilising a range of different RF technologies depending upon the needs of the specific end-application, such as the transmission range, environment and amount of data being transferred.
CML customers in this market produce wireless products for RFID, asset tracking, high-precision global navigation satellite systems (GNSS), smart cities, SCADA and industrial automation. The barriers to entry for some of these categories are extremely high, where security requirements are stringent and product lifecycles in excess of ten years are typical.
This multi-billion US Dollar market opportunity offers strong growth prospects due to Industry 4.0 adoption, large‑scale RFID/asset‑tracking rollouts and the increasing need for GNSS connectivity using accurate radio technology for land surveying, mapping, location-based services, precision farming, maritime and mining.
Aerospace & Defence
For the Aerospace & Defence market, CML supplies RF and mixed‑signal semiconductors to customers producing communications equipment used in avionics, radar, electronic warfare, secure communications and unmanned platforms.
Typical customers include defence primes, avionics OEMs, systems integrators and specialist contractors who require high-performance, long‑life components, traceable supply chains, rugged packaging and extended temperature tolerance.
Key demand drivers are the modernisation of radar and electronic warfare, growth in UAV and autonomous systems, along with a greater emphasis on secure, resilient communications, as well as the broader theme of increased defence spend.
Our multi-year investments and the resulting expansion of our product range are directly driving the growth opportunities we are seeing across our market verticals. Clearly, some initiatives are in the early stages of customer and market penetration and have yet to deliver substantial financial returns for the Group. Others, such as DRM, require the target market to become more established. Providing compelling semiconductor solutions for a wider range of application areas is fundamental to our strategy and essential for the business to transition towards a more diversified and growing revenue base.
In addition to the Company's "standard product" business model, during the year we announced the signing of a long-term design and supply contract with a leading manufacturer of industrial GNSS equipment. The contract is valued at over $30m, highlighting the value that customers place on both our technical capabilities but also our ability to operate as a systems-level partner.
The initial two-to-three-year design period will pave the way for substantial product sales, where CML's ability to meet stringent manufacturing requirements and provide long-term supply chain resilience are key attributes. Work formally commenced on the project during 2025 and a recently held key design review milestone indicated the project is on track.
Investments continued to be made towards further expansion of the product range along with the relevant ecosystem requirements to enable rapid adoption across a wider range of customers. Equally important was the successful conclusion of a multi-year engineering effort to maintain supply security for some of the Group's long-standing core products.
People and operations
Our employees are the foundation of our future success. During the year we made several key appointments, including VP Operations in Silicon Valley, Global VP Sales and Marketing based in the UK, and Senior VP Channel Strategy & Partnerships in the USA; the latter two being internal promotions. Across the Group's 161 employees, the average length of service is 14 years, and 44% have more than ten years' tenure. Continued investment in our people remains a key strategic priority.
As reported at our interim results, the delays in relocating to new premises in Fremont, California are behind us and local operations have aligned with Group global systems, resulting in time and cost efficiencies as the business grows.
Investments made to improve manufacturing capabilities locally were a key factor in achieving the restoration of sales for some important SµRF products previously impacted by geopolitical trade restrictions. The speed with which the situation was rectified is testament to the skills and dedication of the team involved.
Our sales and marketing teams are steadily increasing awareness of CML as a trusted solutions partner in markets where the brand is less familiar, to target customers who need a dependable partner to develop leading-edge products.
To support market expansion, the Company participated in numerous industry trade shows and conferences, including IMS2025, European Microwave Week, ARMMS Conference, Space-Comm Europe, SATShow Week, and regular international events tied to the DRM Consortium. To broaden our reach beyond direct sales efforts, we added channel partners across Europe, the Americas and Japan.
Together, these initiatives are essential to our success, expanding CML's visibility across a broader global customer base.
Summary and outlook
As stated at our interim results, the last few years have tested our resilience, but we have embraced this period as an opportunity to transform the Company, enhancing our business model, structure, "go-to-market" strategy and adapting to evolving market dynamics.
The challenges associated with excess customer inventory levels showed good progress through the second half and continue to improve. The broader environment does reflect the uncertainties associated with geopolitical tensions and the electronics supply chain generally; however, the final quarter of FY26 delivered a stronger financial performance and the progressive order book is providing greater visibility. Taken together, this reinforces our confidence levels as we move through the early months of FY27.
Operationally, the business has made excellent progress, executing a clear expansion strategy driven by an experienced, skilled and committed team. Our strong balance sheet supports multi-year growth, and we expect the year ahead to deliver a year of solid progress, both in terms of sales revenue and operating profitability.
Financial review
Revenue and gross profitability
Group revenue was £20.45m (FY25: £22.90m). The year-on-year decrease reflects the gradual resolution of a general customer over‑inventory position and the temporary inability to supply certain SµRF products until the final months of the year because of a raw material supplier re-qualification programme. We believe we are at the tail end of the inventory situation and expect FY27 to deliver a full year of contribution from products delayed by the re-qualification activity.
Geographically, 53% of sales by destination were to Asia (FY25: 47%), 25% into the Americas (FY25: 30%) and 19% into EMEA (FY25: 19%).
Gross profit for the year was £12.89m (FY25: £15.89m) equating to a gross margin of 63% (FY25: 69%). The margin drop resulted in part from a revenue mix that included a higher contribution of non-recurring engineering (NRE) income from design services activities, at £1.89m (FY25: £0.36m), where margins are lower than product sales and engineering costs are included in cost of sales.
Operating costs
Expenses associated with running the business were marginally higher at £15.28m (FY25: £15.14m) as we continued to balance having an efficient and effective cost base, with appropriate investment in our growth strategy. The figure includes additional exit costs associated with vacating the old premises in Fremont, California, plus general inflationary increases. Conversely, the figure benefits from the exclusion of those fixed engineering expenses that are attached to pure design services activities for specific customers and have been included in the cost of sales.
The Group benefits from Research and Development Expenditure Credit (RDEC), a taxable, above‑the‑line credit associated with qualifying engineering activities. It appears as other operating income in the income statement, is taxable and therefore the net cash benefit is the credit less the corporation tax on that credit. RDEC income received in FY26 totalled £0.71m and related to the current and prior full financial years (FY25: £Nil).
Land disposal, impairment and exceptional gain
In July 2025, an agreement was signed to dispose of surplus land at the Group's headquarters. The first cash amount of £4m was received in July 2025 with the final plot of land being sold on 27 March 2026, culminating in total proceeds of £7.0m across the year, delivering a profit of £5.88m.
Capitalised development costs were reviewed for impairment under IAS 36. After a second full year of ownership of MwT and a recent rationalisation of the Group's target market verticals, an impairment charge of £4.19m has been recognised.
Combined, these items result in a gain of £1.69m for the year which is recorded under other gains and losses within the income statement.
R&D
R&D investment levels were maintained to facilitate a continual flow of innovative new products that are expected to unlock additional growth in future years. The spend on research and development for the year was £5.50m (FY25: £5.50m) with £1.20m of this amount expensed (FY25: £1.30m) and the balance capitalised. Amortisation of development costs was £2.53m (FY25: £2.40m).
Profit
The reduction in product revenues year over year is the overriding factor in the Group delivering a loss from operations, excluding exceptional items, of £1.93m against an FY25 profit of £0.53m, again excluding exceptional items.
A reported pre-tax loss of £0.07m (FY25: £0.77m pre-tax loss) was posted after net finance income of £0.13m (FY25: £0.32m), a profit of £5.88m from the land sale and an impairment of £4.19m against capitalised development costs.
At the time of the Group's trading update on 1 April 2026, we anticipated reporting a statutory profit before tax of approximately £1.8m for FY26, based upon the gain from a revaluation of the remaining land and buildings at Oval Park being reflected in the income statement, along with other exceptional items. The subsequent FY26 audit process, in accordance with the IAS 16 standard, has led to the actual gain of £1.88m being shown as a revaluation surplus within the Statement of Total Comprehensive Income.
Taxation and EPS
A small income tax credit of £0.02m has been recorded against an FY25 credit of £0.75m. The pre-exceptional tax credit of £1.2m was negated by the resulting tax charge of £1.18m from the land sale of excess land.
Basic loss per share amounted to 0.33p (FY25: 0.11p).
Inventory and cash
Inventory levels reduced by £0.90m reflecting an improving market environment towards the end of the year along with the completion of an alternative sourcing strategy. At 31 March 2026, inventories were valued at £4.76m (FY25: £5.66m).
The Group's cash reserves at 31 March 2026 were £12.80m, including short-term cash deposits of £6.55m. This represents an increase of £2.88m over the prior year (31 March 2025: £9.92m) and follows the positive effects of the land sale (+£7m) combined with R&D cash spend of £5.50m, dividend payments of £1.79m and £0.65m capital expenditure.
The total net cash inflow from operating activities was £4.59m (FY25: £3.09m).
Pensions
The Group operates several pension schemes globally, mostly defined contribution in nature. In the UK, the Company historically operated a defined benefit scheme that has been closed to new members and future accruals for many years. A formal triennial actuarial valuation is underway with a valuation date of 31 March 2026, although the process takes some months to complete. As a point of reference, at 31 March 2025, the actuarial estimate indicated a surplus of £0.73m with the funding level at 105%.
When calculated using IAS 19 methodology, the funding position improved through the year with a deficit of £0.61m being recorded (FY25: £1.08m deficit). The beneficial change was largely due to changes in assumptions (a higher discount rate being used following a rise in corporate bond yields over the year) and a higher-than-expected investment return on the scheme assets.
All administrative expenses of running the scheme are currently met directly by the scheme along with pension protection fund levies.
Chris Gurry
Group Managing Director
Consolidated income statement
for the year ended 31 March 2026
Unaudited 2026
Audited 2025
Notes
Before exceptional items
£'000
Exceptional items
£'000
Total
£'000
Before exceptional items
£'000
Exceptional items
£'000
Total
£'000
Revenue
1,2
20,449
-
20,449
22,899
-
22,899
Cost of sales
(7,560)
-
(7,560)
(7,010)
-
(7,010)
Gross profit
12,889
-
12,889
15,889
-
15,889
Distribution and administration costs
(15,279)
-
(15,279)
(15,138)
-
(15,138)
Share-based payments
(288)
-
(288)
(284)
-
(284)
(2,678)
-
(2,678)
467
-
467
Other operating income
747
-
747
66
-
66
Other gains and losses
8
-
1,690
1,690
-
(1,647)
(1,647)
Loss from operations
(1,931)
1,690
(241)
533
(1,647)
(1,114)
Other income
32
-
32
31
-
31
Finance income
226
-
226
423
-
423
Finance expense
4
(91)
-
(91)
(106)
-
(106)
Loss before taxation
(1,764)
1,690
(74)
881
(1,647)
(766)
Income tax credit/(charge)
4
1,203
(1,183)
20
715
33
748
Loss after taxation attributable to equity owners of the parent
(561)
507
(54)
1,596
(1,614)
(18)
All financial information presented relates to continuing activities.
Earnings per share from total operations attributable to the ordinary equity holders of the Company:
Notes
2026
2025
Basic earnings per share
5
(0.33)p
(0.11)p
Diluted earnings per share
5
(0.33)p
(0.11)p
The following measure is considered an alternative performance measure, not a generally accepted accounting principle. This ratio is useful to ensure that the level of borrowings in the business can be supported by the cash flow in the business.
Notes
2026
2025
Adjusted EBITDA
6
2,343
5,218
Consolidated statement of total comprehensive income
for the year ended 31 March 2026
Unaudited
2026
£'000
Unaudited
2026
£'000
Audited
2025
£'000
Audited
2025
£'000
Loss for the year
(54)
(18)
Other comprehensive income/(expense):
Items that will not be reclassified subsequently to profit or loss:
Re-measurement of defined benefit obligation
639
803
Deferred tax on actuarial gain
(160)
(201)
Revaluation surplus - gross
1,882
-
Deferred tax on revaluation surplus
(470)
-
Items reclassified subsequently to profit or loss upon derecognition:
Foreign exchange differences
(56)
(501)
Other comprehensive income for the year net of taxation attributable to equity
owners of the parent
1,835
101
Total comprehensive income for the year attributable to the equity owners of the parent
1,781
83
Consolidated statement of financial position
as at 31 March 2026
Unaudited 2026
£'000
Unaudited 2026
£'000
Audited
2025
£'000
Audited
2025
£'000
Assets
Non‑current assets
Goodwill
12,618
12,625
Other intangible assets
2,272
2,702
Development costs
14,531
16,944
Property, plant and equipment
7,631
5,685
Right-of-use assets
1,783
2,115
Investment properties
1,975
-
Deferred tax assets
1,265
1,569
42,075
41,640
Current assets
Property, plant and equipment - held for sale
-
1,124
Investment properties - held for sale
-
1,975
Inventories
4,761
5,663
Trade receivables and prepayments
3,471
2,867
Current tax assets
347
-
Cash, and cash equivalents
7
6,255
7,782
Short-term cash deposits
7
6,545
2,136
21,379
21,547
Total assets
63,454
63,187
Liabilities
Current liabilities
Trade and other payables
4,584
4,833
Provisions
490
196
Lease liabilities
408
395
Current tax liabilities
101
47
5,583
5,471
Non‑current liabilities
Deferred tax liabilities
4,260
5,324
Trade and other payables
-
447
Lease liabilities
1,549
1,863
Retirement benefit obligation
608
1,076
6,417
8,710
Total liabilities
12,000
14,181
Net assets
51,454
49,006
Capital and reserves attributable to equity owners of the parent
Share capital
853
825
Share premium
2,199
2,258
Capital redemption reserve
8,372
8,372
Other reserve
4,633
2,929
Revaluation surplus - reserve
1,412
-
Treasury shares - own share reserve
(1,682)
(2,175)
Share‑based payments reserve
921
917
Foreign exchange reserve
(668)
(612)
Retained earnings
35,414
36,492
Total shareholders' equity
51,454
49,006
Consolidated cash flow statement
for the year ended 31 March 2026
Unaudited
2026
£'000
Audited
2025
£'000
Operating activities
Loss for the year before taxation
(74)
(766)
Adjustments for:
Foreign exchange movement
160
(48)
Depreciation - on property, plant and equipment
581
563
Depreciation - on right-of-use assets
435
899
Impairment of goodwill
-
1,531
Amortisation of development costs
2,529
2,402
Impairment of other intangible assets
-
116
Impairment of development costs
4,186
-
Amortisation of other intangible assets
409
506
Profit on disposal of fixed assets
(5,876)
-
Movement in non‑cash items (retirement benefit obligation)
171
183
Share‑based payments
288
284
Finance income
(226)
(423)
Finance expense
91
106
Movement in working capital
3,294
(2,201)
Cash flows from operating activities
5,968
3,152
Income tax paid
(1,375)
(60)
Net cash inflow from operating activities
4,593
3,092
Investing activities
Purchase of property, plant and equipment
(651)
(595)
Investment in development costs
(4,286)
(4,217)
Repayment / (investment) of fixed term deposits (net)
(4,409)
4,815
Payment of deferred consideration (business combinations)
(2,067)
(3,786)
Proceeds from sale of fixed assets
7,000
-
Investment in intangibles
(31)
(32)
Finance income
226
423
Net cash outflow from investing activities
(4,218)
(3,392)
Financing activities
Lease liability repayments
(480)
(884)
Issue of ordinary shares (net of expenses)
462
475
Purchase of own shares for treasury
-
(897)
Dividends paid to shareholders
(1,786)
(1,765)
Finance expense
(10)
(20)
Net cash outflow from financing activities
(1,814)
(3,091)
Decrease in cash and cash equivalents
(1,439)
(3,391)
Movement in cash and cash equivalents:
At start of year
7,782
11,262
Decrease in cash and cash equivalents
(1,439)
(3,391)
Effects of exchange rate changes
(88)
(89)
At end of year
6,255
7,782
Cash flows presented exclude sales taxes.
Consolidated statement of changes in equity
for the year ended 31 March 2026
Share
capital
£'000
Share premium £'000
Redemption reserve £'000
Other reserve £'000
Revaluation
Surplus
reserve
£'000
Treasury shares £'000
Share
based payments £'000
Foreign exchange reserve £'000
Retained earnings £'000
Total
£'000
At 31 March 2024 - audited
825
2,327
8,372
3,073
-
(1,822)
666
(111)
37,746
51,076
Profit for year
(18)
(18)
Other comprehensive income
Foreign exchange differences
(501)
(501)
Re-measurement of defined benefit obligations
803
803
Deferred tax on actuarial gain
(201)
(201)
Total comprehensive income for year
-
-
-
-
-
-
-
(501)
584
83
825
2,327
8,372
3,073
-
(1,822)
666
(612)
38,330
51,159
Transactions with owners in their capacity as owners
Issue of ordinary shares - acquisition
-
(144)
(144)
Issue of treasury shares
(69)
544
475
Purchase of own shares - treasury
(897)
(897)
Dividend paid
(1,765)
(1,765)
Total transactions with owners in their capacity as owners
-
(69)
-
(144)
-
(353)
-
-
(1,765)
(2,331)
Share‑based payment charge
284
284
Deferred tax on share-based payments
(106)
(106)
Cancellation/transfer of share‑based payments
(33)
33
-
At 31 March 2025 - audited
825
2,258
8,372
2,929
-
(2,175)
917
(612)
36,492
49,006
Loss for year
(54)
(54)
Other comprehensive income
Foreign exchange differences
(56)
(56)
Re-measurement of defined benefit obligations
639
639
Deferred tax on actuarial gain
(160)
(160)
Revaluation surplus - gross
1,882
1,882
Deferred tax on revaluation surplus
(470)
(470)
Total comprehensive income for year
-
-
-
-
1,412
-
-
(56)
479
1,835
825
2,258
8,372
2,929
1,412
(2,175)
917
(668)
36,917
50,787
Transactions with owners in their capacity as owners
Issue of ordinary shares
28
1,704
1,732
Issue of treasury shares
(59)
493
434
Dividend paid
(1,786)
(1,786)
Total transactions with owners in their capacity as owners
28
(59)
-
1,704
-
493
-
-
(1,786)
380
Share‑based payment charge
288
288
Deferred tax on share-based payments
(1)
(1)
Cancellation/transfer of share‑based payments
(284)
284
-
At 31 March 2026 - unaudited
853
2,199
8,372
4,633
1,412
(1,682)
921
(668)
35,414
51,454
1 Segmental analysis
Reported segments and their results in accordance with IFRS 8, are based on internal management reporting information that is regularly reviewed by the chief operating decision maker (C. A. Gurry). The measurement policies the Group uses for segmental reporting under IFRS 8 are the same as those used in its financial statements.
The Group is focused for management purposes on one operating segment, which is reported as the semiconductor segment, with similar economic characteristics, risks and returns, and the Directors therefore consider there to be one single segment, being semiconductor components for the communications industry.
Geographical information (by origin)
UK
£'000
Americas
£'000
Far East
£'000
Total
£'000
Year ended 31 March 2026 - unaudited
Revenue to third parties - by origin
6,367
4,081
10,001
20,449
Property, plant and equipment
7,221
383
27
7,631
Right-of-use assets
203
1,427
153
1,783
Investment properties
1,975
-
-
1,975
Development costs
12,311
1,067
1,153
14,531
Intangibles - software and intellectual property
314
-
37
351
Goodwill
-
7,117
5,501
12,618
Other intangible assets arising on acquisition
-
1,905
16
1,921
Total assets
46,239
5,591
11,624
63,454
Year ended 31 March 2025 - audited
Revenue to third parties - by origin
4,623
7,500
10,776
22,899
Property, plant and equipment
5,415
234
36
5,685
Right-of-use assets
300
1,732
83
2,115
Investment properties - held for sale
1,975
-
-
1,975
Property, plant and equipment - held for sale
1,124
-
-
1,124
Development costs
14,853
890
1,201
16,944
Intangibles - software and intellectual property
321
-
48
369
Goodwill
-
7,271
5,354
12,625
Other intangible assets arising on acquisition
-
2,238
95
2,333
Total assets
46,740
6,036
10,411
63,187
2 Revenue
The geographical classification of business turnover (by destination) is as follows:
Unaudited 2026
£'000
Audited
2025
£'000
Europe
3,951
4,485
Far East
10,759
10,856
Americas
5,053
6,827
Others
686
731
20,449
22,899
3 Dividend - paid and proposed
During the year a final dividend of 6p per ordinary share was paid in respect of the year ended 31 March 2025. An interim dividend of 5p per ordinary share was paid on 13 December 2025 to shareholders on the Register on 29 November 2025.
It is proposed to pay a final dividend of 6p per ordinary share, taking the total dividend amount in respect of the year ended 31 March 2026 to 11p. It is proposed to pay the final dividend of 6p, if approved, on 21 August 2026 to shareholders registered on 7 August 2026 (2025: paid 15 August 2025 to shareholders registered on 1 August 2025).
4 Income tax expense
Unaudited 2026
£'000
Audited
2025
£'000
Current tax
UK corporation tax on results of the year
1,070
-
Adjustment in respect of previous years
89
1
1,159
1
Foreign tax on results of the year
192
228
Total current tax
1,351
229
Deferred tax
Deferred tax - origination and reversal of temporary differences
(1,788)
(910)
Adjustments to deferred tax charge in respect of previous years
417
(67)
Total deferred tax
(1,371)
(977)
Tax credit on profit on ordinary activities
(20)
(748)
5 Earnings per ordinary share
Unaudited 2026
Audited
2025
Earnings per share pre-exceptional items attributable to the ordinary equity holders of the Company:
Basic earnings per share
(3.45)p
9.95p
Diluted earnings per share
(3.45)p
9.93p
Unaudited 2026
Audited 2025
Basic earnings per share
Loss
£'000
Weighted average number of shares
Number
Loss per share
p
Profit
£'000
Weighted average number of shares
Number
Profit per
share
p
Basic earnings per share - from (loss)/profit for year
(561)
16,267,526
(3.45)
1,596
16,030,969
9.95
Diluted earnings per share
Basic earnings per share
(561)
16,267,526
(3.45)
1,596
16,030,969
9.95
Dilutive effect of share options
-
32,205
-
-
35,010
(0.02)
Diluted earnings per share - from (loss)/profit for year
(561)
16,299,731
(3.45)
1,596
16,065,979
9.93
The calculation of basic and diluted earnings per share pre-exceptional items is based on the profit attributable to ordinary shareholders, divided by the weighted average number of shares in issue during the year, as shown above.
5 Earnings per ordinary share continued
Unaudited 2026
Audited
2025
Earnings per share from total operations attributable to the ordinary equity holders of the Company:
Basic (loss)/earnings per share
(0.33)p
(0.11)p
Diluted (loss)/earnings per share
(0.33)p
(0.11)p
Unaudited 2026
Audited 2025
Basic earnings per share
Loss
£'000
Weighted average number of shares
Number
Loss per share
p
Profit
£'000
Weighted average number of shares
Number
Loss per
share
p
Basic earnings per share - from loss for year
(54)
16,267,526
(0.33)
(18)
16,030,969
(0.11)
Diluted earnings per share
Basic earnings per share
(54)
16,267,526
(0.33)
(18)
16,030,969
(0.11)
Dilutive effect of share options
-
32,205
-
-
35,010
-
Diluted earnings per share - from loss for year
(54)
16,299,731
(0.33)
(18)
16,065,979
(0.11)
The calculation of basic and diluted earnings per share is based on the profit attributable to ordinary shareholders, divided by the weighted average number of shares in issue during the year, as shown above.
6 Adjusted EBITDA
Adjusted earnings before interest, tax, depreciation and amortisation (Adjusted EBITDA) is defined as profit from operations before all interest, tax, depreciation and amortisation charges, exceptional items and before share‑based payments. The following is a reconciliation of the Adjusted EBITDA for the years presented:
2026
£'000
2025
£'000
Loss before taxation (earnings)
(74)
(766)
Adjustments for:
Finance income
(226)
(423)
Finance expense
91
106
Depreciation
581
563
Depreciation - right-of-use assets
435
899
Amortisation of development costs
2,529
2,402
Amortisation of other intangible assets
409
506
Share‑based payments
288
284
Impairment of goodwill
-
1,531
Impairment of intangible assets
-
116
Impairment of development costs
4,186
-
Profit on sale of fixed assets
(5,876)
-
Adjusted EBITDA
2,343
5,218
7 Cash, cash equivalents and fixed term deposits
Unaudited
2026
£'000
Audited
2025
£'000
Cash equivalents
-
2,762
Cash at bank
6,255
5,020
6,255
7,782
Short-term cash deposits
6,545
2,136
12,800
9,918
8 Oher gains and losses
Unaudited 2026
£'000
Audited
2025
£'000
Impairment of goodwill
-
(1,531)
Impairment of intangible assets
-
(116)
Profit on sale of fixed asset
5,876
-
Impairment of development costs
(4,186)
-
1,690
(1,647)
During the year the Group disposed of the excess land at Oval Park for a total consideration o £7,000,000 (plot 1 was sold in July 2025 for £4,000,000 and plot 2 was sold in March 2026 for £3,000,000). An impairment review of the carrying costs of the Group's development expenditure took place which resulted in the development costs being impaired in the year.
During the year ended 31 March 2025, the Group restructured its engineering resources which led to the goodwill and intangibles relating to the acquisition of PRFI Ltd in March 2020 being impaired to £Nil.
9 Principal risks and uncertainties
Key risks of a financial nature
Risk
Mitigation
Imposition of trade tarrifs
Consequence of imposed trade tariffs on the global economy, potential downward impact on revenue and profitability.
The Group operates internationally and, while it has not yet been directly affected by the increases in trade tariffs, it is likely that if further tariffs are imposed or the current situation persists for an extended period of time, the Group may be directly or indirectly impacted, which could result in a loss of revenue and profitability for the Group.
The Directors are constantly reviewing the potential impact of trade tariffs not only on the Group's direct customers but also on its customers' customers and on the supply chain to ensure that appropriate actions can be taken to minimise any impact.
Foreign exchange
The Group's cash balances have exposure to foreign exchange
The Group's earnings are linked to the US Dollar, a decline in this currency will have a direct effect on both transactional and translational foreign exchange risk.
The Group maintains a natural hedge by matching the cash inflows and cash outflows, which reduces the risk at the gross profit line and manages any foreign exchange exposure through the sale and purchase of currencies as required.
Customer dependency
In any reporting period a small number of our key
customers can represent a significant amount of revenue.
The Group has a very diverse customer base generally, with key customer relationships closely monitored. Dedicated sales teams focus on expanding key client relationships and increasing the number of customers served. Changes in buying patterns of key customers could have an adverse effect on the Group's overall performance, financial condition and results from operations. As we expand our product range this is widening our addressable market and reducing customer dependency further.
Supply chain dependency, interruption and cost inflation
The Group's products are developed on specific silicon or compound semiconductor processes that are inherently
sole sourced.
The Group has strong operational relationships with its suppliers, both at the raw materials level and the subsequent product assembly and packaging stage. This helps to minimise the impact from any potential supply chain disruptions. Where practical a dual-sourcing policy is operated for assembly and packaging.
The Group holds high levels of inventory to help protect against disruption. If a key raw material supplier was unable to continue supply on a permanent basis, then the Group would need to invest the R&D effort and associated costs to replace the supplier, subject to that being considered commercially viable.
Supplier prices, currency exchange rates and gross margins are continually monitored which can lead to pricing adjustments with customers.
9 Principal risks and uncertainties continued
Key risks of a financial nature
Mitigation
Credit risk
Potential exposure to bad debt risk from customers.
The Group monitors ageing receivables on a regular basis and takes action to enforce the collection of overdue debts. Credit risk reports are taken out on new customers prior to orders being placed. There is no recent history of material bad debts in the Group.
IT systems - failure or malicious damage
Information security or breach of the IT systems that the Group relies on to support its business operations.
The Group has a standardised systematic approach to maintaining and operating its IT systems globally. There is a risk to the Group if there is unauthorised access to its IT systems which could cause disruptions and a potential impact on revenue and profit.
Relevant security is in place focusing on anti-malware and patch management.
Investments are regularly made in new IT solutions to reduce the security risks associated with older technology.
There is a reliance on the use of semiconductor design automation tools from a small number of third-party suppliers and the Group's ability to source alternatives is limited.
Regular reviews are undertaken of the IT systems along with training. The Group limits access to its IT systems to those that have business requirements.
The Group has an internal IT team supported by a number of world class external partners ensuring that the Group's electronic records and resources remain secure. The backup and recovery of its global IT systems has been real-time tested. The threat from malicious cyber activity is an ever‑increasing risk with awareness and responsibility at Board level and appropriate investments being made.
9 Principal risks and uncertainties continued
Key risks of a non-financial nature
Risk
Mitigation
Customer product demand
Demand for our products is ultimately dependent on the success and demand of our customers' products of which
we are a component supplier.
The Group operates in a highly competitive global market that is evolving continually.
The Group's ability to respond to many competitive factors including, but not limited to, pricing, technological innovations, product quality, customer service, raw material availabilities, manufacturing capabilities and employment of qualified personnel is key to the achievement of its objectives. Expansion of the customer base is a key focus to help mitigate this risk.
Legal requirements
A large proportion of the Group's revenue and earnings
are derived from outside the UK.
The Group's ability to achieve its financial objectives could be impacted by risks and uncertainties associated with local legal requirements, political risk, the enforceability of laws and contracts, changes in the tax laws, terrorist activities, natural disasters or health epidemics.
The Group partially manages this risk by working with local professional advisors to ensure that all local laws and regulations are complied with.
Internal controls ae reviewed by the Board, Committees and external auditors.
A global data privacy framework is in place, based on GDPR principles to meet local requirements.
Understanding of the development, performance or position of the Company's business
Impact of the Group's business in relation to actions of
local government, political events and the environment.
The Directors do not believe that local government, political events and environmental matters are need for an understanding of the development, performance or position of the Group's business. Details of the Group's employees (including gender) and social, community and human rights issues have not been included within the Strategic Report but have been added to the Directors' Report and the Sustainability Report sections of this Annual Report.
10 Significant accounting policies
The accounting policies used in preparation of the annual results announcement are the same accounting policies set out in the year ended 31 March 2025 financial statements.
11 Basis of preparation
These Unaudited Condensed Consolidated Financial Statements have been prepared in accordance with UK adopted International Accounting Standards and are in conformity with the requirements of the Companies Act 2006. They do not include all of the information required for full annual statements and should be read in conjunction with the 2026 Annual Report.
The comparative figures for the financial year 31 March 2025 have been extracted from the Group's statutory accounts for that financial year. The statutory accounts for the year ended 31 March 2025 have been filed with the registrar of Companies. The auditor reported on those accounts: their report was (i) unqualified, (ii) did not include references to any matters to which the auditor drew attention by way of emphasis without qualifying the reports and (iii) did not contain statements under section 498(2) or (3) of the Companies Act 2006.
The statutory accounts for the year ended 31 March 2026 are expected to be finalised on the basis of the financial information presented by the Directors in this preliminary announcement and signed following approval by the Board of Directors on 29 June 2026 and will be delivered to the Registrar of Companies following the Company's Annual General Meeting on 11 August 2026.
The financial information contained in this announcement does not constitute statutory accounts for the year ended 31 March 2026 or 2025 as defined by Section 434 of the Companies Act 2006.
A copy of this announcement can be viewed on the company website http://www.cmlmicroplc.com.
12 Approval
The Directors approved this preliminary results announcement on 17 June 2026.
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